The first quarter of 2019 flew by, and it seemed to fly especially fast, as our office has seen more activity than we had in the last 2 years! Our office just closed 97 transactions in 3 months. If the trend continues for the rest of this year, all indicators are that our real estate market is bouncing back from a 3 year downturn. It’s about time Houston!
Following a mini crash at the end of 2018, oil prices are rebounding again and staying in a profitable range of $60 per barrel, so we are also seeing more relocation activity than we have seen in the last 3 years. However, according to members of the Houston Relocation Network Group that we are part of, relocation clients are increasingly moving towards a home purchase rather than a lease. This could cause the higher end rental market to stay stagnant or continue to drop if the trend continues.
I am happy to report that we continue to Lease homes that are in new and updated condition, but I would approach this market with caution and not only insure that rental properties are in good condition, but also make sure they are priced well.
While activity is picking up, we still have a lot of inventory due to a slow 2018, so we are still in Buyer’s market with over 6 months supply of inventory. Prices may continue to drop as homes that have been on the market for a long time struggle to find the right buyer, and the demand for remodeled homes that are ready to move in will continue to be higher than the fixer upper.
The silver lining behind Harvey is that flooded homes are being remodeled to look like new, but this will be tough competition for the homes that did not remodel because not only are the homes like new, they are also priced lower.
It is a great time to purchase a home with lots of inventory and lower interest rates. Please read the article below about mortage rates dropping to the lowest rate in a year.